How much should I save each month?

The 50/30/20 rule suggests saving 20% of your income. However, the exact amount depends on your goal. Use this calculator to work backward: enter your goal amount and timeline to see the required monthly deposit.

Where is the best place to put my savings?

For short-term goals ( 5 years), investing in a diversified stock portfolio (like S&P 500) typically yields higher returns (8-10% average) but comes with risk.

How does compound interest help me save?

Compound interest means you earn interest on your interest. Over time, this accelerates your savings growth. For example, saving $500/month for 10 years at 7% return results in ~$86,000, where ~$26,000 is just free money from interest.

What is an emergency fund?

An emergency fund is money set aside for unexpected expenses like medical bills or job loss. Aim for 3-6 months of living expenses. Keep this in a separate, easily accessible savings account.

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Savings Goal Calculator

Calculate how to reach your savings goals with monthly contributions.

Savings Plan

Savings Goal ($)

Current Savings ($)

Time Frame (months)

Annual Interest Rate (%)

Monthly Deposit Needed

Goal Amount$0

Current Savings$0

Still Needed$0

Total Contributions$0

Interest Earned$0

Target Date-

Saving Actually Works (If You Stick to It)

Most people fail at saving because they rely on willpower instead of systems. "I'll just spend less" isn't a plan—it's hope. This calculator shows you the exact number you need to hit. Now you just need to automate it.

💡 Real Talk from David Chen, CFA

Set up automatic transfers the day after payday. If the money never hits your checking account, you can't spend it. I've seen people save $50k in 3 years this way—same income, zero extra discipline needed.

Real Savings Goals

House down payment ($40k in 5 years): Need to save $667/month at 2% interest. Doable if you're making $60k+.

New car ($25k in 3 years): $694/month needed. Or buy a $15k used car and save $278/month instead.

Emergency fund ($10k in 2 years): $417/month. This should be your first priority before anything else.

Wedding ($15k in 18 months): $833/month. Or just elope and invest the difference.

⚠️ Common Mistake: Lifestyle Creep

You get a raise from $50k to $60k. Instead of saving the extra $10k, you upgrade your apartment and car payment. A year later, you're still broke. Increase your savings rate when your income goes up, not your expenses.

Where to Keep Your Savings

Short-term (\u003c2 years): High-yield savings account. Currently paying ~4-5% in 2025. Don't risk it in stocks.

Medium-term (2-5 years): Mix of HYSA and conservative investments. Maybe 70/30 split.

Long-term (5+ years): Invest it. S&P 500 index fund averages 8-10% over time. Way better than a savings account.

The Secret: Start Smaller Than You Think

Calculator says you need $800/month? Start with $200. Actually stick to it for 3 months. Then bump to $400. Then $600. Building the habit matters more than hitting the perfect number immediately.

Most people set crazy goals, fail after 2 weeks, and give up. Don't be that person. Slow progress beats no progress.

Quick Wins

Round up purchases to nearest $1, save the difference (apps do this automatically)
$5/day coffee = $1,825/year. Brew at home 4 days/week, save $1,460
Cancel subscriptions you forgot about. Average person has $273/month of these
Bi-weekly paycheck? You get 2 "extra" paychecks/year. Bank them entirely

None of this is revolutionary. But it works if you actually do it.

Reviewed by David Chen, CFA

Chartered Financial Analyst | Last Updated: November 2025

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